As a nonprofit distribution co-op, WCEC buys wholesale power from other entities to distribute to members as they use it. WCEC doesn’t mark up the cost of power or make any profit from it. As power costs fluctuates, the Power Cost Recovery Factor (PCRF) allows WCEC to pass the cost variations to members. This is not a rate change on the price of electricity, but members pay more or less per kWh as the PCRF is raised or lowered.
To secure the best power prices, WCEC purchases power through a generation and transmission cooperative (G&T). G&T’s enable distribution co-ops like WCEC to plan power supply in larger quantities to take advantage of economies of scale.
Members’ monthly charges, per the applicable Schedule, shall be increased or decreased based on a PCRF (expressed in charge per kWh) computed monthly as follows:
PCRF = (A – B ± C) ÷ kWhs
A = Total estimate cost of power from all suppliers.
B = “Base Power Cost” is WCEC’s total estimate cost of power included in the Co-op’s Rates. The Base Power Cost is computed as: B = (D)(kWhs)
C = Adjustment to be applied to the current monthly billing to account for differences in actual cost of power and actual PCRF revenues recovered in previous periods.
D = $0.03972
kWhs = Total estimated energy sales for billing period.
Can Someone Help Me Understand My Bill?
We’d be happy to help! Just give us a call us at (903) 763-2203 or email WCEC.